Lions, tigers, and layaway plans, oh my!
Layaway plans have made a comeback in time for the holiday season. One great incentive to the layaway plan is no interest on the payments, unlike credit cards. Due to high unemployment rates and harder economic times, retailers are seeking ways to encourage customers to purchase goods. Business Insider notes that several large retailers have jumped on the bandwagon: Sears, Kmart, TJ Maxx, Toys R Us, Burlington Coat Factory, and others.
It seems that consumerism is fighting to stay alive. Retailers are proving that they are willing to resort to old techniques to get consumers spending. If they have to get shoppers on payment plans, they appear willing to do so. It goes to show how vulnerable businesses must be feeling.
We’re not knocking the hustle. Consumers are strapped. Retailers are striving for a profitable quarter. However, we are concerned that market overall isn’t conducive to rampant spending. Yet, it’s not stopping retailers from trying any methods to get shoppers in their stores. We’ll sit and watch where the chips fall.
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{ 3 comments }
I’ve never been a fan of lay-a-ways. Isn’t the concept the same? Pick out what you can’t afford at the time and use money you don’t yet have in your bank account to spend. The lay-a-way mindset doesn’t even think of unexpected emergencies or worse yet, an unexpected job less. Also, let’s be frank. Who is it that uses lay-a-way? Those that probably do not have credit cards because of credit issues…
My main problem with the lay-away concept is that I’m lending money, INTEREST-FREE, to the store I’m planning to purchase something from, thus padding their bottom lines even more.
Enough said!
Thanks for commenting! Brilliant way of looking at it. It’s so true. They’re sitting on both your money and the product. One has to wonder if this tactic will manipulate the way they report profits for the holiday spending.
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